HomePolitics
Reductions in parental allowance: Lindner’s 2024 budget draft provides, among other things, for reductions in payments for parents. With what consequences?
Berlin – When it comes to parental allowance, there still seems to be trouble between Finance Minister Christian Lindner (FDP) and Family Minister Lisa Paus (Greens). The background is Lindner’s plan to lower the income limits for state benefits for parents. In response to Paus’ concerns about Lindner’s savings on parental allowance, the Minister of Finance tweeted: “If the responsible colleague is not convinced of the change in parental allowance, then she can and should make her contribution to consolidation in a different way.”
But what does the federal government intend to do with parental allowance in the future? An overview of what has so far applied to parental allowance and what could change.
Cuts in parental benefits: What could change in the future as a result of Lindner’s plans © Fernando Gutierrez-Juarez/dpa
Will parental allowance be reduced? Lindner wants to massively lower the income limit
In the future, only parents with an annual income of up to 150,000 euros will be entitled to parental allowance. So far, parents who have earned more than 300,000 euros together twelve months before the birth of their child have been able to receive parental allowance. That’s what he reported Spiegel.
The date from which the reduction will apply is not yet known. Initially, cuts in parental benefits were probably also being discussed. However, the Ministry of Family Affairs was able to avoid this by restricting the circle of those entitled. Nevertheless, the Family Ministry regrets the cuts and warns of negative effects on the equality policy goals of the Federal Government, it is said. The financing of basic child security is probably still being negotiated.
What is parental allowance?
Parental allowance is a state wage replacement benefit. It secures the income of young parents if they devote themselves to bringing up their children in the first few months of their life instead of working. Couples are currently allowed to receive parental allowance for 14 months. Eligible persons can receive parental allowance plus for twice as long as basic parental allowance.
Calculation of parental allowance: amount depends on net income
The amount of parental allowance depends on how much income the parent caring for the child had before the birth of the child and whether there is no income after the birth. Parents with higher incomes receive 65 percent, parents with lower incomes up to 100 percent of the net previous income. Depending on income, the basic parental allowance is between 300 euros and 1800 euros per month and the parental allowance plus, another variant, between 150 euros and 900 euros per month. An overview of how the parental allowance is currently kindergeld.org is calculated:
Average net income before the birth Calculation of parental allowance (replacement rate) Minimum amount (is always paid) 300 euros Maximum amount 1,800 euros Less than 1,000 euros 67 to 100% of the net parental allowance 1,000 to 1,200 euros 67% of the net parental allowance 1,200 to 1,240 euros 65 to 67% of the net parental allowance Over 1,240 euros 65% of the parental allowance net
The assessment period for parental allowance is twelve months before the month of birth
The assessment period usually includes twelve months before the month of birth of the child. Income from employment that the parent has during this period is the basis for calculating parental allowance. There is also the option, for example using Parental allowance calculator with planner about the family portalto determine your entitlement to parental allowance yourself. Also via the online portal Parental allowance calculator at kindergeld.org For example, it is possible to calculate how much parental allowance would be due to those entitled to gross EUR 3,000.
Traffic light coalition: The Scholz cabinet at a glance
View photo gallery
How long is the parental allowance paid out?
The parental allowance is paid as compensation for the loss of income after the birth of the child for a maximum of 14 months. The time can be divided freely between both parents. The period of 14 months is therefore not necessarily tied to just one parent. However, a minimum of two months and a maximum of 12 months for one parent are required. Single people can claim the full 14 months of parental allowance.
Application for parental allowance: This deadline must be observed
In some federal states, parents can also apply for family benefits online using the application assistant Parental AllowanceDigital. In general, the following time limit applies when applying for parental allowance: Parents should submit the application within the first three months of their child’s life. Because parental allowance is paid retrospectively for a maximum of three months of life. The application for parental allowance can only be made after the birth of the child.
In contrast to basic child security, the state pays parental allowance. Child benefit is paid by the family funds of the employment agencies. Child benefit, which will be increased from 2023, only gets one parent, both parents can apply for parental benefit. (gods)
2023-07-04 19:03:55
#Lindner #plans #reduce #parental #allowance #consequences
